Boston, MA 04/24/2014 (wallstreetpr) – BlackBerry Ltd (NASDAQ:BBRY) will invest in NantHealth to provide technology services to healthcare business. It will connect medical equipment with data centers and mobile devices used by doctors. NantHealth is a health-care technology firm and a division of NantWorks that is run by billionaire Patrick Soon-Shiong.
Why new venture
BlackBerry Ltd (NASDAQ:BBRY) now targets customers for high margin software business that will connect computers or mobile devices to machines so to make it more convenient for people to access information as and when they need. The high margin business will improve the Company’s profitability in the long run.
What next
The smartphone market is highly competitive due to increasing competition from Google and Apple. So, the decreasing sales of phone units make the Company difficult to sustain in the smartphone business. The declining sales not only affect the top line growth, but it also increases the pressure to report a profit due to high interest and rising operating expenses.
Therefore, BlackBerry now focuses on other opportunities such as high margin businesses by supplying hardware and software to customers such as health care, government, finance and law, who needs integrated solutions and a secured platform to enhance their productivity.
In addition, Soon-Shiong is now focusing on the use of technology into genome analysis to treat cancer. It includes the integration of machines into high-speed network through cloud computing. So, it helps the hospitals to collect patient information from their monitoring devices and provide an intelligent tool to the doctors for diagnosis and treatment.
On the other end, BlackBerry’s systems will provide a secure online platform for patient related information among the health care professionals. It will speed up the process for diagnosis and provide a secure close-looped platform for medicines, insurance and payments.
Conclusion
BlackBerry Ltd (NASDAQ:BBRY) continues to look for new prospects to streamline its operation and generate profit in the medium to long term.
